Monday, 5 January 2015

IRS is here in the USA to do the rightful, purposeful, and
dutiful job of tax collections for different IRS forms and one such form is
1099-MISC structured for reporting tax return for miscellaneous income and
which has been normally received by millions of people across the US who are as
self-employed, as independent contractors, entrepreneurs, and self-styled
practitioners. This continues day after day for which IRS structured this form
1099-MISC exclusively for people who do services as consultants under
part-time, unlike the employees who work in full-time to file w-2 forms.

It is
obvious that IRS ensures that people pay taxes both direct and indirect means
and collects the taxes owed.IRS do this by co-ordination as matching the
1099-MISC form as they received from your client with the one you have received.
It is something like a background information that IRS has a proof from your
client that you have already received payments from him for the services and
hence it is unavoidable that you owe tax to IRS through form 1099-MISC.
Especially with IRS form 1009-MISC the independent contractors and consultants
as service providers have to be careful and it is like a blade with two sharp
edges and inescapable.

As an independent contractor, consultant, entrepreneur, everyone
will get a 1099-MISC form from the companies they provided necessary and
required services for - as long as the payments were at least $600 for the
prior year. Now, if they did not get anything in the mail, then they should
contact their respective clients and request for the form 1099-MISC. Yes, there
can be times when the form can get lost or sent to the wrong address or, the
clients may have taken up their own time which becomes been late or did not
even realize a form needed to be sent out! To help along with the process, as
independent contractors, consultants, one should also send over a completed W-9
form.

And further what if the client still does not send the
1099-MISC forms? Well, Independent contractors still need to report the income
and also simultaneously notify the IRS. Often there are enough chances in
accounting of your bills being overlooked, Independent contractor should report
any gross income earned even if it’s under the $600 threshold.

When an Independent contractor starts to receive the
1099-MISC forms, he can start the process of putting all bills and figures together
to work for your tax return. It is needed for many independent contractors to
fill-out a Schedule C to tally up the income earned and if any deductible
expenses. There will also be a need to file a Schedule SE, which accounts for
Social Security and Medicare payments.

Independent contractors can have the experience of perfect
tax preparation software as provided by IRS certified tax partner http://www.Etax1099.com for e-fling needs of
IRS form 1099-MISC.